Shares of Broadcom (AVGO) - Get Broadcom Inc. Report were falling sharply after-hours Thursday after the company reported mixed quarterly results, beating earnings expectations but missing revenue estimates.
The San Jose-based semiconductor maker reported fiscal second quarter earnings of $5.21 per share on revenue of $5.51 billion, a 10% increase year over year. Analysts were expecting the company to report earnings of $5.18 per share on revenue of $5.66 billion.
The stock was down 6.8% to $262.46.
"We executed according to plan in the second quarter with tailwinds from networking offsetting the anticipated headwinds from wireless," said CEO Hock Tan. "We currently see a broad-based slowdown in the demand environment, which we believe is driven by continued geopolitical uncertainties, as well as the effects of export restrictions on one of our largest customers."
That uncertainty surrounding U.S./China trade tensions is also weighing on the stock after hours as the company said that customers were actively reducing their inventory levels and Broadcom in turn is "taking a conservative stance for the rest of the year."
The company also approved a quarterly cash dividend of $2.65 per share payable July 2 to shareholders of record on June 24.